5/7/2024 Item #8
City Council
100000 Meeting
Item # 8 RTC# 24-342
Public Hearing #2: FY24/25 Annual
Action Plan (FINAL) for the Use of
Federal Housing and Urban
Development Grant Funds
1852
THE MISSION CITY
2021-2022 Substantial Amendment
May 7, 2024
1 Background
• The 2024-2025 DRAFT Annual Action Plan details programming recommendations for federal HUD funds for the 2024-2025 program year. • HUD requires two public hearings to gather public comment:
› March 19, 2024 City Council - first public hearing
• May 7, 2024 City Council - second/final public hearing • Comments from first public hearing:
> Non-profit agencies spoke on the importance of their programs. > City Council asked how to increase public service funding, about universal income, using CDBG for ADA curb ramps citywide, navigation centers, and timeliness for CDBG spending.
2 POST MEETING MATERIAL
1 5/7/2024 Item #8
24/25 Annual Action Plan Revisions
• Staff learned that HUD is anticipating a 13% reduction in CDBG and 16% reduction in HOME funding; staff has reduced funding estimates to be conservative;
• Staff learned that the Health Trust will transition management of the Meals and Wheels Program to another nonprofit (Loaves and Fishes) effective July 1, 2024. Staff initially removed Meals and Wheels from the public comment draft AAP, but has since confirmed the City can fund Loaves and Fishes for continuity of the program;
Staff increased the Project Sentinel amount from $51,264 to $67,803 to correct an error in the first draft. The corrected amount is the same as what was funded in the prior year.
3 3
2024-2025 Annual Action Plan
Estimated Resources
CDBG CDBG
Estimated Resources Estimated Resources
$1,830,873 $1,700,000
$1,034,553 $899,653
24/25 Allocation 24/25 Allocation
$15,574 $19,601
Funds from prior years Funds from prior years
$780,746 $780,746
Program Income Program Income
4 2
Item #8
5/7/2024
2024-2025 Annual Action Plan
Estimated Resources
HOME HOME
Estimated Resources Estimated Resources
$1,025,000 $832,068
$437,588 $364,642
24/25 Allocation 24/25 Allocatior
$577,412 $457,426
Funds from prior years Funds from prior years
$10,000 $10,000
Program Income Program Income
5 Public Services
Bill Wilson Center - Counseling & Family Therapy $31,600 HOPE Services - Educational Services $31,600
CDBG Funds Silicon Valley Independent Living Center (SVILC) $31,600 Senior Adult Legal Assistance (SALA) - Legal Assistance $31,600 Heart of the Valley - Support & Transportation Services $31,600 Loaves & Fishes - Meals on Wheels $31,600
Total $189,600
Project Sentinel - Landlord/Tenant Mediation Services $67,803 General Funds Catholic Charities Ombudsman - Ombudsman Prog. $15,000 United Way 211 Services $5,000
Total $87,803
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3 5/7/2024 Item #8
Affordable Housing Programs
CIP for Affordable Housing - Liberty Tower $100,000
NCIP Activity Delivery Costs $74,321
CDBG Funds NCIP Loans and Grants (entitlement only) $250,000 Rebuilding Together - Minor Repair Program $150,000
Total: $574,321
TBRA Rents and Deposits $730,908
HOME Funds Community Housing Development Org. (CHDO) Set-aside $54,696 Total: $785,604
Affordable Housing Fund 165 TBRA Administration & Case Management $160,697 Housing Successor Fund 169 TBRA Administration & Case Management $140,000 Capital Projects
CDBG Funds ADA Curb Cuts (Public Facilities) $600,000
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5/7/2024 Item #8
Overview
Contingency Language for CDBG
Higher than expected Lower than expected
If the City receives less Program Income
nd/or prior year resources are lower tha
stimated, the City Council would decide, o
delegate to the City Manager to decide, which
9 Overview
Contingency Language for HOME
Higher than expected Lower than expected
If the City receives more Program Income
and/or prior year resources than
estimated, the excess funds shall be
allocated to the TBRA program after the
City's portion for administration is set
10 10
5 5/7/2024 Item #8
2021-2022 Annual Action Plan
Substantial Amendment Process
• When proposing significant changes to a previously approved Annual Action Plan, the City must complete a Substantial Amendment. • The public must be given at least a 30-day Review Period to provide comment on the Substantial Amendment and its proposed changes. • The Review Period began on April 5, 2024, and the Substantial Amendment will be presented at the May 7, 2024 City Council Meeting. 11 2021-2022 Annual Action Plan
Substantial Amendment Changes
• HUD requires entitlement jurisdictions who receive HOME funds to set aside a portion for Community Housing Development Organizations or CHDOs.
• CHDOs are nonprofit organizations that meet HUD requirements and have capacity to serve as the owner/sponsor of an affordable housing project.
The City has not committed its CHDO funds because CHDO
administration is labor intensive for a relatively small amount of funding; few agencies are willing to serve as CHDOs. 12 12 6
Item #8
5/7/2024
2021-2022 Annual Action Plan
Substantial Amendment Changes
• Jurisdictions must hold CHDO set aside funds for two years before they can reprogram them for other HOME eligible uses.
• The 21/22 AAP had set aside $66,451.65 for CHDO purposes. • Staff recommends reallocating these funds for use in the Tenant Based Rental Assistance Program (TBRA).
TBRA
CHDO
$66,451.65 MMM
13 13
Council Action
Recommendations
Approve the 2024-2025 Annual Action Plan 5-7-24 Revision (FINAL) and direct staff to include any public comments received.
Delegate authority to the City Manager or designee to execute all agreements and amendments that exceed the City's $250,000 threshold for federal and local funding that is allocated through the City Council's adoption of the 2024-2025 Annual Action Plan in final forms approved by the City Attorney.
3. Approve the 2021-2022 Annual Action Plan Substantial Amendment to repurpose CHDO funds for Tenant Based Rental Assistance. 14 14
5/7/2024 Item #8
City Council
Meeting
Item #8 RTC# 24-342
Public Hearing #2: FY24/25 Annual
CITY OF 0000000000 Action Plan (FINAL) for the Use of
Federal Housing and Urban
Development Grant Funds
1852
THE MISSION CIN 2021-2022 Substantial Amendment
May 7, 2024
15